Karl Company Has Total Assets of $170,000 and Total Liabilities

question 40

Multiple Choice

Karl Company has total assets of $170,000 and total liabilities of $110,000.The company's debt-to-equity ratio is closest to which of the following?

• A) 0.33 to 1.
• B) 0.39 to 1.
• C) 0.65 to 1.
• D) 1.83 to 1.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in cash.

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for, including both operating activities and investments.

Financing Activities

Transactions related to a company's raising or repaying capital, such as issuing shares, paying dividends, or taking on new loans.

Cash Dividends

Money distributed by a corporation to its shareowners, frequently as a dividend from profits.